Posted on 25 Oct 2022
Prices of rebar in China's domestic market have stayed above those of hot-rolled coil (HRC) for 3.5 months, Mysteel's data show. Market sources said the steeper cut in rebar production was responsible for the rebar price surpassing HRC.
As of October 20, the national average price of HRB400E 20mm dia rebar was Yuan 126/tonne ($17.4/t) higher than that of Q235 4.75mm HRC, according to Mysteel's assessment, rebar having first overtaken HRC on July 11.
Producing hot coil is technically more difficult than producing rebars, with tolerances and chemical composition generally stricter, with the result that mills usually charge more for their coils than for ordinary construction long products, Mysteel Global notes.
Though domestic demand for rebar has softened over the past few months, prices have been supported by the more severe reductions in production, market sources commented.
During the period from June 16 to October 19, weekly rebar production among the 137 Chinese steel mills Mysteel samples was assessed at 2.76 million tonnes on average, as against 3.8 million tonnes during the same period of last year.
Over the same period, weekly HRC production among the 37 Chinese steel mills Mysteel tracks was assessed at 3.07 million tonnes on average, lower by a comparatively small degree from the 3.15 million tonnes/week average twelve months ago.
Source:Mysteel Global
